Why outsource logistics and IT?

Outsourcing was invented by Henry Ford so that not only the richest could drive cars. Today, we are increasingly outsourcing logistics and IT services because, thanks to evolving technology, we need highly specialised, tailor-made and yet affordable services.

Not all of us need to like and know how to shorten trousers or change tyres. After all, that's what dressmakers and car mechanics are for. Without using the skills and knowledge of professionals, we would have far less time and opportunities. Delegating tasks means that we can do what we choose to do because we can and often enjoy it.

Multitasking and apparent omnipotence are now being criticised by scientists who study the biochemistry of the brain. The narrower the area of our operations, the more precise the focus and the better the results achieved in less time.

If there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further.

These assumptions work well in managing companies, and not since today. Back in 1923, Henry Ford said: "If there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further. We should hire the one who does it better than we do”. As we know, he has come out of it favourably, gaining timeless fame as he revolutionised the mass-production of cars.

What is outsourcing and what are its benefits?

In business, delegating work to an external company is called outsourcing. Properly implemented, it is a prerequisite for success, as it reduces costs and contributes to better control of operational expenses. Certain tasks, such as logistics and warehousing or IT services, can be performed more quickly and cheaply by another company specialising in these areas.

This will enable us to focus more effectively on achieving our strategic objectives and to respond more flexibly to changes and challenges in the industry. The smaller the area of direct management, the more room for creativity. This allows us to raise new capital and implement innovative solutions more effectively. Indeed, we do not need to invest in growth and have fewer expenses in the short term, but over time this can have the effect of putting us out of business with more imaginative competitors.

The expert knowledge and know-how of business partners saves not only money, but also time and human resources, which contributes to better results and a higher market value for the company.

Logistics and IT in outsourcing

Hiring an external company precedes the decision on which functions to outsource.
 This involves the most efficient, cost-effective, low-cost access to a variety of resources. These should be support tasks supporting the company's core strategy or fulfilling specific elements of it.

The following are most often outsourced:

as well as relatively simple services such as:

Logistics companies, as well as those in the IT field, are becoming increasingly common as outsourcers. In both of the latter cases, it is a matter of specialised knowledge that will enable our company to significantly improve its efficiency.

Developments in technology are contributing to changes in many industries that need to be responded to if we want to be profitable. There is almost a need to enlist the help of outsourcers to find new growth drivers. The demand for cheaper, yet tailor-made logistics and IT solutions is further created by the ongoing consolidation of the market.

How to choose service providers for a company?

As with any service, the company should be well verified - it is advisable to read recommendations and feedback from clients and colleagues. The main rule of delegation is - the narrower the range of services a company provides, the better, because then it is better specialised.

If someone claims to know everything, they don't really know anything well. Specialised but smaller companies (not corporations) are able to perform the service professionally but at a reasonable price.

We can opt for full or selective outsourcing. In the latter case, part of the tasks are performed in-house. When concluding a contract with an external company, it is worth paying attention that the cooperation is based on trust, oriented towards the achievement of precisely set goals and the completion of individual project stages.

Also important is the security of both parties to the contract, for example commercial, ownership and know-how. Economists predict that outsourcing in Poland will develop more and more dynamically.

New technologies, especially digital, information technology, are significantly increasing the possibilities for companies to relocate and decentralise their activities. This favours the outsourcing of logistics and IT services.

10 questions you need to ask yourself before a sales peak

Every sales peak is a big challenge for your shop. During this time there are many more enquiries, orders and... problems. Fortunately, many situations that involve increased demand for the products you sell can be prepared for in advance. In this article, we have gathered ten key questions that every online shop owner should ask themselves, both before and after the sales peak.

The busiest time of the year for almost the entire e-commerce sector is approaching fast. After all, the last two months of the year are always a time for big purchases for yourself and the loved ones.

What events in this year's e-commerce calendar must you not forget?

This means that in the last two months of 2021 you will have as many as five opportunities to increase your sales! What can you do to make the most of this time? Start by asking yourself ten important questions. After all, the answers to these will determine what Q4 will look like in your shop. 

Question 1: What does my historical data say?

Start with a thorough analysis of last year's sales peaks. What did you offer your customers then? What were the special offers? How many orders did your shop receive? How many new customers were acquired? What problems arose then? Getting the answers to these questions will give you an initial overview ahead of Q4 2021. This is because you can safely assume that this year will be similar. Polish e-commerce is growing dynamically every year and more and more customers are buying online (according to the latest Gemius report, almost 80% of Poles buy online!). They are often young and financially well-off. 

You can assume that your shop traffic this year may even be higher than last year. This is why good preparation is so important, and analysis of previous results will tell you which areas to focus on first.

Question 2: Do I know my customers' expectations?

Here again, we return to sources of market and customer knowledge, such as the already quoted Gemius study. It is worthwhile to analyse e-commerce market reports on an ongoing basis. Firstly, because this sector is changing very dynamically and it may simply turn out that you have missed a trend or an important change, so you may unknowingly lose some traffic and customer interest. And secondly, with this knowledge, you can plan for further development. 

Reports such as E-commerce in Poland 2021 contain a lot of practical knowledge. You will learn from them, for example:

See, for example, what Polish consumers say about shipments and returns:

If either of these forms of delivery is missing from your offer, you may find that some customers will stop buying from you. Similarly, there is the returns issue - note that the expectation of the Polish market is clear - returns should be free. Is this how it is in your shop?

If you speak English, you will find even more valuable information about e-commerce across Europe here. This information will be particularly useful for those online business owners who are planning to expand internationally.

Question 3: Do I have enough stock?

Once you have done your homework, i.e. analysed last year's shopping festivities and have a better understanding of the market you are operating in, you can move on to preparing for the 2021 sales peak. Start with the stock. Here the important questions are:

Here again, analysing historical data will be very helpful. If you had 1,000 orders during Black Friday 2020, you can expect the same or even more this year. 

Question 4: Will my logistics team be able to handle?

With this comes the wider question of logistics. Stock is one thing, but it still needs to be packed and shipped. Do you have the right resources for this task? Here it is important to mention not only the warehouse staff themselves, but also the packing materials and accessories. A sudden shortage of something as mundane as packaging can bring shipping to a standstill, even if only temporarily. What this entails need not even be mentioned.

Also make sure you have the right system to manage your shipments and warehouse operations. But that's what we do! With Way2Send you have easy access to your stock and orders. This makes it easier for you to manage and fulfil your orders. For large online shops that send out hundreds of orders per month, this type of software is simply essential. 

If you have not used such a solution before, we warmly invite you to test the Way2Send system. Way2Send is the way to automate your warehouse. And with integrations with hundreds of courier companies from all over the world, e-commerce platforms (such as PrestaShop and IdoSell) and systems like ERP or WMS, you have easy access to everything related to logistics and orders. In one place! Do you want to know more? Contact us! 

Question 5: Is the shop ready for increased traffic?

Here, technical issues come into play first and foremost. During Black Friday, or shortly before Christmas, the number of orders can increase by up to several hundred per cent. This means several hundred per cent more traffic to your website. 

If you are using an external e-commerce platform, make sure that your plan does not have any limits imposed (primarily in terms of the number of people viewing the site at the same time or the number of orders placed). Generally, if there are such limits, they tend to be set at a safe level, but it is worth verifying this.

If, on the other hand, you are using your own server, hosting and platform (e.g. WooCommerce), find out from your provider of these services what kind of traffic your shop will be able to handle. There's nothing worse than not being able to view your site while everyone is looking for gift ideas. Even a few minutes of website inactivity can result in financial losses of several thousand zlotys. 

PAGE LOAD SPEED

It is worth recalling on this occasion that, for some time now, Google has been implementing new guidelines (so-called core web vitals), which indicate how highly positioned sites in the search engine should perform. One of the key indicators of CWV is LCP, or largest contentful paint. This indicator tells you how long the largest text/graphic block on your site takes to load. In simple terms, we can assume that it is the loading time of your website. According to Google's guidelines, this time should not exceed 4 seconds, and perfectly if it goes below 2.5 seconds:

Start by measuring your site's current score. You can do this using a free tool provided by Google. Data from the K2 Precise agency shows that as recently as September 2021, only 56% of Polish online shops were performing well (under 2.5 seconds). 8% of shops load in a time described as poor:

There is therefore plenty to work on. The same agency indicates that the fastest-loading shops achieve a result of... less than a second.

Question 6: Do I have a good idea for special offers during the peak?

In the age of price comparison sites and marketplaces, checking that your Christmas/Black Friday special offers are actually value for money is not a major problem. If you want to get the most out of Q4 plan your special offers well. Consider:

WHICH PRODUCTS SHOULD HAVE LOWERED PRICES AND BY HOW MUCH? 

Here you need to check what your customers are happy to buy and which products you have the biggest margin on. Remember, too, that any special offer affects products that are not discounted (their popularity falls during this time). For example, if you promote products on which your margins are slim, those that give you better earnings will suffer. 

HOW TO CREATE GIFT SETS? 

Product sets are very popular when looking for a gift idea. It is also a good opportunity to sell off products that are a little less popular and avoid the problem of dead stock, i.e. products that are no longer of interest to customers and have become unsellable. You can combine complementary products in sets (use cross-selling for this), but it is also a good idea to combine a bestseller with a less popular product.
Here it all depends on your ingenuity! Here it all depends on your inventiveness!

WHICH PROMOTIONAL STRATEGY WILL YOU USE?

The choice is wide! You can, for example, go in the following directions:

Question 7: Is my marketing strategy ready?

Promotions are one thing, but you still need to ensure that as many people as possible find out about them. Nowadays, an omnichannel approach prevails in e-commerce, which assumes that online shops are wherever their customers are and try to constantly build long-term relationships with them. 

Ensure that your offer is well visible above all in channels such as:

Ensure you have a strategy in place to guarantee good visibility among current and potential customers.

Question 8: How to encourage new customers to visit more often?

Sales peaks are always a time when many new customers come into your shop. It would be a shame to waste this potential, right? Create a strategy to keep them coming back for longer. A focal point can be a loyalty programme. The ARC Market and Opinion study cited earlier indicates that last year as many as 60% of respondents used such programmes! The report also says that these consumers are generally heavily involved in participating in such programmes (the active group is as high as 63% of all users). Other opportunities include the aforementioned mobile apps and vouchers for future purchases. It is also worth actively seeking marketing consents, e.g. for sending newsletters. In this situation, every new customer is also a new email address to which you can send information about new products on offer and promotions.

Retargeting also comes into play, which is a strategy that allows you to display ads to people who have already been to your website. Retargeting is used to remind people of previously viewed products or an unfinished purchase process. The push notifications mentioned earlier work on a very similar principle. According to research, the effectiveness of retargeting (also often referred to as remarketing) is really high. The CTR of such ads is even ten times higher than that of standard display ads!

Question 9: What lessons should I learn for the future?

We are still before the 2021 peak. Make a good analysis of everything that will happen in your shop during this time and use this knowledge next year. There will probably be some mistakes and slip-ups. Consider them as valuable lessons for the future. That way, every year your offer will get better and better and your customers will be happier and happier!

Question 10: Can I somehow automate work in the future?

In today's world, automation is a trend that is emerging everywhere, including in marketing and logistics. Marketing automation tools will help you to do things faster and better:

And what about the logistics? Way2Send also fits in perfectly with the trend towards work automation. Our system provides you with everything you need to manage your orders and warehouse work efficiently. With our help, the dispatch of orders is much faster and smooth! Do you want to know more? Fill in the form on the website and see how we can help you in your daily work.

Logistics challenges 2022 - how to prepare?

Every year brings new challenges and the e-commerce industry is no different. Customer expectations are constantly rising and online shops are struggling to keep up with them. One area where you need to be ready for more work is logistics.

What can we expect from the coming year when it comes to shipping orders to customers?

Probably few sectors are growing as rapidly as e-commerce. The pandemic has only accelerated this process. Customers all over the world have fallen in love with online shopping and there is no indication that this is about to change any time soon.

One of the key areas when it comes to e-commerce is logistics. Activities such as taking orders, packing packages and shipping them to customers can consume a lot of time, yet have a real impact on customer satisfaction. If you run an online shop, how can you prepare for the logistical challenges that the new year brings?

Is your shop ready to handle orders in 2022?

Let's start with customers' expectations of delivery times. In the second half of 2021, Gemius prepared a comprehensive report on the state of the Polish e-commerce market. One of the questions that respondents were asked was about the perfect delivery time for an order:

Graphics source: Gemius

Note that 24-hour delivery is no longer sufficient. Today, customers expect delivery within 12 or even 8 hours. Many shops that manually manage orders are not able to meet this expectation.

If this applies to you too, it is worth thinking about somehow improving or even automating the preparation and shipping of orders. One such way could be to invest in software that comprehensively helps with order fulfilment and preparation. Shops using the solution provided by Way2Send save a lot of time on packaging and shipping goods. As a result, customers receive their ordered products faster.

DELIVERY TO PARCEL LOCKERS AND FREE RETURNS

Secondly, you should ensure that your shop includes all the forms of delivery and returns that customers expect. In the Gemius survey, customers indicated the three most important forms of delivery for them:

Źródło grafiki: Gemius

Are all three on offer in your shop? If not, it's high time to get it right! What about returns? The information coming from the Polish market is clear - customers expect free returns. 

 

Graphics source: Gemius

Of course, for your shop this is not necessarily good news. After all, a free return means extra work and costs that no one will reimburse you for. The benefit, on the other hand, is that you will gain recognition from your customers in this way. As a result, the money lost in handling free returns can come back to you multiplied in the form of additional orders and more customers. Will it pay off? Definitely yes!

What else to keep an eye on in the coming year?

First and foremost, consider possible supply chain issues. Although everyone has become accustomed to the pandemic, it still has a major impact on the way many businesses, including wholesalers and distributors, operate. 

If you use foreign suppliers for the products you offer in your shop, make sure your deliveries in 2022 run smoothly. You may need to place orders in advance so that you can be sure not to run out of stock in your warehouse, especially before busy periods.

A final point that it is always relevant to automate your work. The more you can do automatically or with minimal effort, the more time you will have left for business development and customer service. This will make it easier to scale your business and increase profits. And when it comes to automating your logistics, you can start with a platform that comprehensively helps you manage your orders. 

Selling online? Automate everything you can!

If you want to compete with e-commerce giants like Allegro, Amazon, Zalando or Empik (and win), you need to process orders as fast as they do. Only, unlike you, they have a huge advantage... Scale. 

How do you compete with the biggest online shops?

The right size for a not only online shop usually means access to multiple suppliers, warehouses, competitive purchase prices, competitive shipping prices and sophisticated software used in preparing orders for customers. How to compete here? How to provide the same level of service as the resource-rich behemoths?

Against the odds, there is an opportunity for those smaller and even those starting out in e-commerce. It' s the automation of order fulfilment!

How do you optimise shipping?

Let's find out how to create a "wow!" effect with your customers, i.e. how to speed up the collection of goods, packaging and sending to the courier.

Order fulfilment automation is your future. Not convinced yet? Let's go into more detail. 

Order fulfilment is the driving force behind e-commerce. This long process starts when the order is received and ends when the customer picks up the package and decides to keep it.

Advantages of automation

There are advantages to automating and streamlining many stages of this journey.

1. Faster processing and fast delivery times give buyers what they want.Your customers want promptness. In fact, 95% of buyers want same-day delivery* (E-commerce Report 2020), but only a few offer it. Slow or expensive shipping is also a major reason for shopping cart abandonment, meaning it can cost you the loss of closing the deal.

Join the leaders, automate all the steps leading up to shipping and get an immediate advantage.

2. Better customer service helps achieve better retention rates.

Intelligent automation helps to streamline the entire order fulfilment process, from faster parcel preparation, faster delivery to excellent customer service.

Every business is only as strong as its weakest link. If you eliminate the mistakes that are the result of your employees' manual work you will give them the chance to improve their customer service. This will allow them to spend more time on customer retention projects instead of soul-sucking repetitive operations that can be outsourced.

3. Streamlined processes are what secure your business for the future.

Customer expectations will not go back to the old, slow days. If anything, modern technology such as drones and driverless cars, along with same-day delivery, will continue to raise their expectations.

By streamlining your processes, you are setting yourself up for long-term success.

How do you prepare to implement automation in your online shop?

Firstly, you need to answer the question of what your current order fulfilment process looks like. How many operations do we do manually, how many systems do we click the same data in and what causes us the most problems.

By identifying what is working and what is not and where the process is experiencing delays, you can make better choices and start the automation process much faster.

Your success in automation depends on two main decisions. Let's take a look at both.

1. Choosing the right software

Software drives the modern online shop. IT in the economy is the nervous system through which different entities begin to communicate with each other. Everything from inventory management and shipping to pricing and customer service can be handled (or at least greatly improved) with integrated IT solutions.

To automate the fulfilment process, look for specialised software that handles the entire process from start to finish. (Way2Send is such a software, but we won't hint at it for you, because the best comes with effort ☺) This makes it easier to set specific rules and control them. Whatever supplier you choose, make sure it integrates with your business existing solutions. 

2. Order Packing & Shipment

Packing parcels is so easy... or isn't it? The actual business of packing and shipping goods is the most time-consuming part of the fulfilment process. It is essential to ensure that it runs as smoothly as possible.

Whether you perform fulfilment in-house or use an outsourced solution, there are steps you can take to speed up the flow.

Managing your own order fulfilment

Managing your own order fulfilment has clear advantages. It makes it easier to add a personal touch to your brand and can help ensure the quality of your packaging.

If you fulfil orders through your own warehouse, here are some things you can do to streamline your process:

If you do not want to or cannot prepare parcels yourself, take advantage of the extensive range of fulfilment companies in Poland. Outsourcing parcel preparation services provides speed and cost advantages without investing too much time and money.

Remember, however, that by outsourcing your fulfilment services, you are handing over responsibility for the end result of your orders, i.e. quality control, to your partner. Therefore, you need to be sure that the chosen fulfilment operator is right for you, i.e. has the right technology to give you peace of mind.

Your logistics partner should use technology to automate customer order preparation processes to streamline its own processes. Remember that the customer's satisfaction with the package they receive is now in the hands of someone else, so check how your chosen fulfilment centre will handle your orders before you start working with it. Find out what control tools you will have.

Prioritise fast shipping for VIP customers. Prime is the new standard. You should offer free two-day shipping everywhere you sell and familiarise yourself with Amazon's, Empik's or Allegro's new fast shipping programmes.

Use software that communicates with your shop, invoicing system and warehouse. You need to synchronise your inventory management software, so make sure all solutions talk communicate with each other.

Check how your customers rate you. So-called 'social proof' matters. Check reviews and make sure that the partners you choose will do everything possible to minimise damaged parcels and poorly fulfilled orders.

You should also make sure that any charges are transparent and straightforward in their rules. For example, a typical 3PL operator may charge for receiving, storage, packaging, number of products in a parcel, label printing, shipping and more. Look for a partner that makes all this billing as simple as possible.

Prepare for success

Streamlining and automating the customer order fulfilment process is about finding holes, bottlenecks in the system and eliminating them. Don't just limit yourself to what a logistics company employee tells you. Think about optimising your shop's processes all the time and the results will come by themselves and make you feel really good!

Software and warehouse optimisation - which technology solutions to use?

Warehouse optimisation is the basis of a successful sales company. Order, rapid dispatch organisation, extensive cooperation with suppliers - seemingly a natural thing, but the challenges of growing e-commerce require new tasks from the warehouse software.
 How to optimise it?

Optimisation of warehouse management and WMS

Without warehouse management software, no commercial company could sell. WMS (Warehouse Management Systems) are currently the basic and quite common tool for administering warehouse space.

Their task is to organise the work of the warehouse - streamlining the receipt of goods, then storing them, marking them to prepare them for dispatch and finally efficiently handling the dispatch itself.

They accompany each product from the moment it arrives at the warehouse until it is delivered into the hands of the customer, and comprehensively generate the necessary documents. They create product labels and print barcodes. This entire journey is monitored within a single system, and this is what facilitating the work of the warehouse with the help of technology is all about.

With the right software, the warehouse is tidy and orderly and communication between departments (receiving, loading, shipping) is more efficient. Technology makes stock levels continuously controlled. These are the basic expectations that warehouse owners place on software systems.

How does this currently look in practice? The old unified systems are no longer trendsetters. They can no longer meet all the challenges of today's sales and e-commerce developments. They tend to be archaic. The optimisation of warehouse management is currently one of the most important challenges facing every commercial company. An efficient and modern warehouse is the basis for successful sales and a steady increase in revenue.

With the right software, the warehouse is tidy and orderly and communication between departments (receiving, loading, shipping) is more efficient. Technology makes stock levels continuously controlled. These are the basic expectations that warehouse owners place on software systems.

How does this currently look in practice? The old unified systems are no longer trendsetters. They can no longer meet all the challenges of today's sales and e-commerce developments. They tend to be archaic. The optimisation of warehouse management is currently one of the most important challenges facing every commercial company. An efficient and modern warehouse is the basis for successful sales and a steady increase in revenue.

Changes follow changes

There is no sales activity without e-commerce, and in this area changes follow changes.

WMS can be more or less modern, cheaper or more expensive, but their common denominator is that they are designed for traditional businesses , says Krzysztof Sykuła, CEO and founder of Way2Send. - Their technology is quite static. They were intended to be deployed and to work in such a way that no changes need to be made. The times we live in, however, keep bringing new challenges.

Krzysztof Sykuła thinks that nowadays there is no sales activity without e-commerce, and in this area changes follow changes. Business models change, commodity suppliers change, technologies change, new players enter the market. The sheer complexity of evolving technology means that a WMS, even if it was expensive, needs upgrading.

Way2Send is in the business of adapting systems from the passing reality to the new times. It integrates them with modern technological solutions, responding to the constantly emerging new needs of customers.

– For example, it may be a question of data flow to the WMS – Krzysztof Sykuła explains. - We remember that the system is static and the data flows in from different places, it has to be modified so that it always arrives at this large system according to the same standard. The WMS now needs to have an interpreter that, no matter who is feeding this data, will translate and collect it according to one rule. Way2Send is just such a system.

Integration with couriers and sales platforms

Way2Send's new branding, for example, is MagPacker, which modifies and improves all the old solutions. They can still give some stability in the data flow, but need to expand with new activities. – We are a kind of overlay on these systems – Tomasz Cisek says, CRO in Way2Send. – Through our activities, the possibility of increasing the amount of integration is improved. We can integrate with anyone at any time.

The ever-increasing growth of online sales today requires warehouses to work with any number of courier companies.
Not only are there more and more of them, but they are changing their business models. The expectation that a parcel will reach the customer almost at the speed of light is the norm today; competition does not allow you to be left behind. In addition, we are sending more and more items through intermediaries, so new parcel sizes and ways of securing them are emerging. The e-commerce market has evolved and is still evolving. Therefore, the old systems started to lack a smooth connection with courier companies.

The Way2Send system integrates the WMS with the suppliers. - What makes us stand out is that we have grown with the market. When e-commerce was developing, we were as well – Tomasz Cisek says. - We are a reflection of what the market needs. We haven't come up with anything abstract because we are detached from our customers' needs.

Optimising sales on Allegro

Another challenge for systems that manage the warehouse are sales platforms such as Allegro, OLX, Amazon. More and more of these are being created and are increasingly modern. – Way2Send integrates with all these platforms – Krzysztof Sykuła says. - We are able to connect such a system to a warehouse within a day. We can personalise our integrations so that they are constantly up-to-date.

Working with Way2Send streamlines stock updates between any sales channels. – If, for example, we sell on Allegro, in our own online shop and on OLX, then when the goods are sold on Allegro, the stock in the other shops will decrease by 1 item. – Krzysztof Sykuła explains.

Product packaging optimisation

Way2Send offers customers technologies that efficiently automate operations, making people's jobs easier. With these solutions, it is possible, for example, to choose any packaging model for the products. The packaging process itself, i.e. preparation and picking, are much more efficient. The company offers as many as seven packaging options, selected individually according to customer needs. – Optimising warehouse processes today is about using technology as much as possible with less and less human intervention – Krzysztof Sykuła says. – The idea is to get the goods off the shelves as quickly as possible, pack them up and send them to the courier, while at the same time making the cost of this process as optimal as possible, i.e. at the lowest possible cost.

Way2Send innovations for optimising warehouse management

Way2Send's original innovation is the ability to split the sorsing of different goods from one order into separate warehouses.

Example: we have a web order with 3 products, each in a different warehouse. With Way2Send technology, we can forward a specific SKU (each good is a unique SKU) to the corresponding warehouse. We can also create any set from products that appear as separate SKUs and pack them in different packages. – We also have a production module that allows the finished product to be modified to suit the customer's purchase. It can be engraved, embroidered, personalised as desired – Krzysztof Sykuła says. – We also handle customised orders that are not in stock and need to be produced specifically for the order.

Way2Send customers also have the option to benefit from handling any dropshipping processes, i.e. sending parcels from the warehouse on behalf of the shop where the transaction was made. The proprietary solutions also address fullfilment, i.e. per-customer reporting per KPI of the customer served. Way2Send implements its new technology in place of the old one at lightning speed. – If a warehouse is migrating from any system to ours, we are able to do this migration within days or even hours, not weeks – Tomasz Cisek says. – We efficiently monitor key processes in the customer's warehouses and respond remotely and automatically. We offer the best possible financial model on the market, allowing clients to manage costs. With us, clients pay one rate only for the packed and dispatched parcel.

PUDO - the easier, the better

This is the key, most rapidly growing trend in logistics. PUDO is increasingly becoming the delivery method of choice in Poland as well as in Germany, France or Finland. What is PUDO and why is it gaining popularity right now?

PUDO is an abbreviation for Pick-Up and Drop-Off. This form of delivery is all about the possibility of sending and receiving parcels at designated points. The idea originated from the concept of click&collect - a service for picking up online orders at a retailer's stationary shops.

 

The pandemic has activated online sales on an unprecedented scale, which is closely linked to logistics services. We are ordering more and more products online and have increasingly high delivery requirements. We want the package to arrive not only cheaply, but also in an express time. We also want to be able to collect it at our convenience. The courier's knocking on the door may not always come at a convenient time - for example, we may be in a Zoom meeting or doing something equally absorbing while working remotely. Courier visits also require our presence at home, at the address indicated. Even the designated time window for delivery can prove problematic, as we cannot spontaneously change our plans. In addition, we don't always want people at home to see what we have ordered, because it could be a surprise gift. The wonderful remedy for these complications is actually PUDO. We value this method of delivery the most, especially in recent times - because it is flexible, we can adapt it to our needs - decide when and where we will meet our package.

How much we like the freedom of choice is shown by the numbers - from mid-2019 to now, the number of pick-up spots in Poland has increased by more than 70 per cent. In the European Union and the UK, there has been a 40 per cent increase in this service over the same period. The country with the highest number of PUDO points in Europe is Germany, i.e. 57,000.  This is due to the fact that as much as 85 per cent of its population of more than 80 million are daily Internet users. France is also high on the list of PUDO spots, i.e. 45,000. The UK (38,000) and Italy (36,000) are in the lead.

Global brands, such as DPD, UPS or DHL, among others, are constantly responding to new demands and requirements of their customers, resulting in an increasing number of pick-up spots being established all over the world. In our country, too, parcel lockers are springing up on housing estates and next to supermarkets at a rapid pace. 

We can also pick up our ordered products in small shops or service outlets, which are open until late hours and sometimes even at weekends. In the case of automatic spots, they can even be used in the middle of the night. It turns out that Poles like this way of collecting parcels, because it is in our country that the largest number of parcel lockers in Europe is located - there are 11 thousand of them. In January last year, In-post delivered 70 thousand parcels to parcel lockers, and in January this year as many as 180 thousand. We are followed by Spain (10,000) and Germany (7,000) in terms of the number of parcel lockers. However, the densest parcel locker network can be found in Finland. In this Scandinavian country, the majority of parcels are delivered this way, and this is where most employees work from home.

The biggest advantage of PUDO is that it provides us with the convenience of going to pick up a parcel at a convenient time to a place that we are close to and is on our way. Therefore, nowadays, being able to choose a pick-up spot may prove to be the deciding factor when purchasing a particular product from a particular retailer. PUDO is also an equally advantageous option for logistics companies, because since we started ordering more online, it has become apparent that delivering a parcel directly to your home is the most expensive delivery method. With PUDO solutions, one person can deliver a hundred parcels to one place at almost the same time as one parcel to someone's home. PUDO therefore satisfies two parties - the supplier and the recipient. This is why this hot logistics trend will continue to grow in importance. 

EU VAT for the e-commerce industry - what has changed?

On 1 July 2021, changes to VAT on e-commerce were introduced for EU member states. This means that shopping on popular Chinese sales platforms is no longer so cheap, and domestic companies are facing a major revolution. In this article, we explain what changes have been introduced and what they mean for the e-commerce industry.

The first big change is the abolition of the VAT exemption for small consignments of up to EUR 22. This provision applies to the import of goods into the European Union - ordering from AliExpress, for example, is no longer so cheap. From the beginning of July, all consignments arriving in Poland will be subject to 23 per cent VAT (as part of the regulatory changes, the applicable VAT rate is that of the buyer's country, not the seller's). This decision is intended to steer potential customers towards intra-EU purchases. 

Who is affected by the new EU VAT?

The regulatory changes affect all e-commerce entrepreneurs within the European Union. Polish entrepreneurs have had the opportunity to register for the OSS system since 1 April. The aim of the changes is to make it easier for entrepreneurs to sell in the EU. 

The most important simplification is that companies no longer have to register for VAT in each country in which they want to start selling. An electronic registration on an online platform is enough to pay all sales tax on sales within the EU. This is a huge streamlining of the process, as settlements can be made in the native language on a quarterly basis.

What is the reason for the changes?

The main reason for the changes is to improve the competitiveness of EU sellers.
 Taxing everyone, including small consignments, is expected to make it less attractive to shop at Asian or American giants. Instead, customers will be more willing to buy from sellers located in the EU.

The new EU VAT is also expected to simplify the operation of online shops through the introduction of OSS (One Stop Shop) and to tighten up tax rules in the European Union. The tax gap in the EU budget is a serious problem for the countries united in the Community. 

OSS and IOSS - what are these?

OSS is a newly created One Stop Shop, extending the VAT MOSS accounting provisions. VAT MOSS only covered telecommunications, broadcasting and those provided electronically. OSS includes:

The introduction of the OSS means that there are no longer transaction thresholds above which a trader must register and pay VAT in the buyer's country.
 The new limit is EUR 10,000. Failure to exceed it means accounting for VAT in Poland. 

The IOSS import procedure is intended to give traders the opportunity to declare VAT for shipments up to EUR 150. The introduction of the IOSS makes it the entrepreneur, not the customer, who pays the VAT. The Import One Stop Shop was created to facilitate VAT settlements for traders who supply goods from outside the EU to residents of Community countries. 

VAT 0% - is it still possible?

The 0% VAT rate is still possible under the Intra-Community Supply of Goods.
 The entrepreneur can be exempted from VAT if the tax has been settled under IOSS or the courier company (or post office) has made a customs declaration. In order for the tax rate to be 0%, the trader must meet certain conditions, including that the supply must be made to a purchaser with a valid identification number for intra-EU transactions and the supplier must be registered for EU VAT.

The new EU VAT procedure involves a major revolution in the e-commerce industry, and its introduction is intended to increase the attractiveness of sellers from EU countries. Finally, the tax rules have also been clarified. Unfortunately, it often turns out that the changes introduced mean higher prices when shopping online.

Logistics of courier companies - how does a parcel arrive so quickly?


The best online shops are able to deliver a parcel within less than eight hours. For many customers, this fact is still astonishing. How is it that a parcel is able to reach a customer in such a short time? We will answer this question in a moment. We will also highlight some of the key conditions that must be met for a parcel to arrive quickly.

If you run an online shop, you surely want the logistics in your shop to work perfectly. One element of this is fast delivery of ordered products. Until recently, a delivery time of up to 24 hours was such a desirable standard. Today, the world of e-commerce is speeding up and customers expect same-day delivery, and preferably in less than 8 hours. Such opinions are confirmed by a recent survey on the Polish e-commerce market conducted by Gemius:

What is interesting is that, as recently as last year, customers were more 'understanding' and a delivery time of up to 24 hours for parcels was appreciated by 44% of customers. But that is in the past, now such a time satisfies only 29% of those surveyed. The question arises, how are courier companies able to deliver a parcel so quickly?

How is it that the parcel reaches the customer so quickly?

First of all, let us emphasise that the parcel does not always reach the customer in a short time. In order for this to be possible within less than 12 hours, a number of conditions have to be met, both on the shop and the buyer's side. We will tell you a little more about this in a moment. Express delivery is primarily possible thanks to a well-developed transport infrastructure. The largest courier companies have thousands of branches, warehouses, vehicles and employees at their disposal. It all works together like a well-oiled machine. 

See, for example, what this looks like for DPD, one of the largest carriers in Europe.
 This company has at its disposal:

As a result, a parcel handed over to a courier today can even reach the customer tomorrow morning in some countries. Local couriers are doing even better in this field. In Poland, the express delivery service is provided, for example, by X-Press Couriers, CityCouriers and even inPost and UPS. In some situations, these companies allow same-day delivery.

However, as we have already mentioned, several requirements must be met for this to be possible.

WHAT CAN BE DONE TO ENSURE THAT A PARCEL REACHES A CUSTOMER QUICKLY?

First and foremost, you need to ensure that your packaging and handover system is efficient. The sooner your package is ready, the sooner it can be handed over to the courier, who can then deliver it to the recipient. To speed up the process of preparing orders for dispatch, it is worth using the platform provided by Way2Send. With this platform, you can easily find the right goods in stock, order the courier, pack the parcel and prepare the waybill. Your shop can save a lot of time this way.

Secondly, it is important what route the parcel has to take. Unfortunately, it is unlikely that a parcel sent from Zakopane to Kołobrzeg will arrive on the same day. Express delivery is usually possible within the largest Polish cities and conurbations.  In November last year, the CCC group announced a new service, assuming the delivery of a parcel to a customer within just 60 minutes of placing an order. At present, the service is available in Warsaw, but it is soon to be expanded to other major cities.

A final point worth emphasising is the time it takes to send a parcel. The sooner an order "leaves" your shop, the sooner it will reach the customer. For orders shipped by midday, delivery on the same working day is possible. Receipt of the order by courier after 4pm will result in delivery on the next working day at the earliest.

Let's summarise briefly. If you want to offer customers short delivery times, take care of:

  1. An efficient order preparation system.
  2. Working with a carrier that allows express shipments.
  3. Preparing and releasing parcels as early as possible. 

Reverse logistics - which solutions in modern logistics are green?

Today, the trend towards eco-friendly behaviour is growing at a rapid pace and covers various areas of life. Green energy sources are being developed, and organic washing powders and BIO food can be found on shop shelves. Also, many clothing brands are using 100% natural materials for their clothes, such as cotton and linen. And what about logistics and transport? 

It is not a well-known fact that logistics and ecology are areas that do not go well together. However, new trends and greater environmental awareness among consumers are forcing companies to adopt environmentally friendly solutions. Let us therefore find out what eco-methods are used in modern logistics. 

Many Poles admit that they are more likely to buy a product from a brand that is environmentally friendly. Approximately 80% of consumers notice the non-ecological practices of shops. Most of these relate to product packaging (oversized cartons, large amounts of film, non-ecological fillers). Fortunately, this is slowly changing and ecology is also entering transport companies.

 

 

Ecology in logistics - examples of solutions

ECO-FRIENDLY BOXES

Let's start with biodegradable cardboard boxes. Recycled materials are used in their production. To some consumers, it may seem that the eco-friendly packaging will not be strong enough and not resistant to various types of damage. However, this is a misconception, as these boxes are durable and protect the product packed inside them. In addition, they are aesthetically pleasing and contribute to the positive image of the company using them. 

To further minimise the negative impact of logistics on the environment, some companies refrain from packing cartons in courier poly mailers. 

If an order consists of several products, most online shops pack them in one cardboard box. This minimises the carbon footprint and the amount of waste. 

FILLERS

Sometimes fillers are necessary, especially for sensitive items that may break or scratch during transport. Non-organic bubble wrap, polystyrene chips or protective polyethylene foam can be replaced with crumpled paper, which is FSC certified. This means that it is made from wood that has been harvested in a way that does not damage the forest structure.

In addition, the perfect fit of the packaging to the product minimises the amount of fillers in the package.

BIODEGRADABLE/COMPOSTABLE COURIER LABEL

This is a courier envelope made of biodegradable film. It is worth mentioning that it is not exposed to sunlight. 

Companies using eco-friendly boxes, FSC-certified crumpled paper as filler and a biodegradable courier label can send orders in 100% eco-friendly packaging.

Environmentally-friendly solutions in modern logistics 

MINIMISING CO2 EMISSIONS

Transport generates large amounts of carbon dioxide. Therefore, many companies try to schedule courier arrivals and departures well to reduce CO2 emissions. Another solution could be a bicycle delivery programme in major city centres. Some brands are using electric cars or aerodynamic trailers to reduce fuel consumption on long transits.

MONITORING OF MATERIAL USE AND WASTE SEPARATION

Many companies carry out careful monitoring of the consumption of packaging materials. Such monitoring allows the packaging process to be optimised. We would also add that, in terms of waste management, your company can register with the Waste Database (BDO). This registration gives you the opportunity to sign a contract for regular waste collection and disposal, further reducing your environmental impact.

Today, reverse logistics is based on the design of environmentally friendly, biodegradable packaging and solutions that offset the negative impact of transport on the environment. As research shows, many consumers want to buy from environmentally-friendly shops. So it is not surprising that more distribution and shipping companies are choosing to carry reverse logistics into their offerings.